Can I Receive Tax Credits for My New Furnace?

For a lot of families, there usually seems to be a long list of home improvement projects that they would like to complete or new ideas they’d like to try. While several may not be necessary, furnace replacement is an example of a job that could be critical to keeping your home comfortable throughout the colder months in Alice.

Buying a new furnace is a great investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a tad intimidating at first. The good news is that when you buy a new energy-efficient furnace, you could be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you must select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Rescue Heating & Air, we’ll help you select a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity will not be the only savings you’ll find when you select a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our teams at Rescue Heating & Air a call at 361-265-4371. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.